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Fortis Healthcare rallies on stake sale in Hong Kong unit

The stock was up over 6% at Rs 111 on National Stock Exchange.

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SI Reporter Mumbai
Last Updated : Oct 15 2013 | 9:49 AM IST
Fortis Healthcare has rallied over 6% at Rs 111 after the company has sold its Hong Kong unit Quality Healthcare to insurance major Bupa for $355 million (approx Rs 2,100 crore), a move that will help the company reduce debt.

“Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare has decided to sell its 100% stake in Altai Investments Limited, the holding company for Quality Healthcare, Hong Kong, to Bupa, for US$ 355million,” Fortis Healthcare said in a press release. The deal is expected to be completed in October 2013.

We have taken a strategic decision to intensify our focus on our core hospital and diagnostic business in India with a clear path to profitability. The divestment also enables us to further strengthen our balance sheet and substantially improve our net debt equity ratio, creating further room for growth, said Fortis Executive Chairman Malvinder Singh and Executive Vice-Chairman Shivinder Singh.

The stock opened at Rs 109 and touched high of Rs 111 on NSE. A combined around 469,000 shares change hands on the counter till 0945 hours on NSE and BSE.
 

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First Published: Oct 15 2013 | 9:47 AM IST

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